MCGC
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  • Aug. 18, 2015, 9:42 AM
    • MCG Capital (NASDAQ:MCGC) owners will receive 0.332044 shares of PFLT and $0.30595 in cash for each share of MCGC they own. PennantPark Floating Rate is issuing about 11.8M new shares in for the deal.
    • SEC Form 8-K
    • The affair has been a costly one for MCG Capital's other suitor, Phil Falcone's HC2 Holdings (NYSEMKT:HCHC) - it's seen about 35% of its value erased as Falcone was unable to take control of MCG Capital and its fat pile of cash.
    • Related: How The MCG Capital Bid Crushed HC2's Stock Price (June 29)
    | Aug. 18, 2015, 9:42 AM | 4 Comments
  • Jul. 28, 2015, 8:34 AM
    • MCG Capital (NASDAQ:MCGC): Q2 EPS of $0.00
    • Revenue of $1.63M (-82.9% Y/Y) beats by $0.33M.
    | Jul. 28, 2015, 8:34 AM
  • Jul. 13, 2015, 10:44 AM
    • Noting the sharp drop in the price of HC2 (HCHC -0.8%) stock over the past few weeks (well south of the 20% collar as of the date of the last HC2 offer), MCG Capital (MCGC +0.4%) says the PFLT offer of $4.75 per share in cash and stock is now higher than HC2's.
    • Both MCG Capital and PennantPark Floating Rate Capital (PFLT) have special meetings set for August 14 to vote on the deal.
    • Presentation
    • Previously: MCG Capital files proxy, sets date for buyout vote (July 2)
    | Jul. 13, 2015, 10:44 AM
  • Jul. 2, 2015, 11:55 AM
    • MCG Capital (MCGC) sets August 14 as the date for a special meeting for shareholders to vote on the company's sale to PennantPark Floating Rate Capital (PFLT -0.1%).
    • PFLT is offering roughly $4.75 in cash and stock. HC2 (HCHC -1.6%) is offering about $5.30 in cash and stock, but appears to be out of bullets in its bid to win MCG from PFLT.
    • SEC Schedule 14A
    | Jul. 2, 2015, 11:55 AM | 3 Comments
  • Jun. 29, 2015, 9:14 AM
    • Surprising no one, the MCG Capital (NASDAQ:MCGC) board rejects Phil Falcone's (NYSEMKT:HCHC) latest bid for the company, preferring the lower bid from PennantPark Floating Rate Capital (NASDAQ:PFLT).
    • MCG board Chairman Richard Neu stick the knife in a little deeper, noting the big recent decline in HC2's stock has pulled the price below the 20% collar, meaning MCG owners would get just $5.13 per share in value were the deal to close today (vs. the $5.25 offer).
    • Writing in SA Pro today, Bradd Kern - a bull on HCHC a couple of hundred percent ago - says the MCG Capital bid is a sizable misstep by Phil Falcone, and the likely reason for the big recent fall in the stock. He remains bullish, however, expecting the stock to recover once past this episode.
    | Jun. 29, 2015, 9:14 AM
  • Jun. 24, 2015, 8:46 AM
    • Not commenting at all on Phil Falcone's (NYSEMKT:HCHC) revisions to his bid for the company, MCG Capital (NASDAQ:MCGC) says the board will review. In the meantime, the agreement with PennantPark Floating Rate Capital (NASDAQ:PFLT) continues to have the board's support.
    • Previously: Falcone partly calls MCG Capital bluff (June 23)
    | Jun. 24, 2015, 8:46 AM
  • Jun. 23, 2015, 9:05 PM
    • In its rejection of HC2's (NYSEMKT:HCHC) latest buyout bid, MCG Capital (NASDAQ:MCGC) said if Phil Falcone is so sure of closing the deal, why not offer to pay MCG $25M in cash for any potential losses in event of the acquisition not going through.
    • In response, Falcone comes part of the way there, offering MCG $13.35M in cash instead of HC2 common stock if his company is unable to consummate the purchase.
    • Falcone continues to also offer to pay MCG the $7M termination fee owed to PFLT. In its most recent rejection, MCG had suggested HC2 offer to pay the $7M termination fee directly to PFLT. It seems like six one way, half a dozen the other, but we're not lawyers.
    • Previously: MCG Capital again rejects Falcone bid (June 22)
    • Previously: HC2 again ups the pressure on MCG Capital (June 16)
    | Jun. 23, 2015, 9:05 PM | 5 Comments
  • Jun. 22, 2015, 8:54 AM
    • "The HC2 (NYSEMKT:HCHC) transaction presents a material risk of non-consummation," says the MCG Capital (NASDAQ:MCGC) board, adding that the proposed downside protection from HC2 may not be superior to that of the PFLT deal.
    • If HC2 really believes the SEC will approve its purchase, says the board, it should pay the $7M termination fee directly to PFLT and stick $25M in a "lock-box" for MCG shareholders to cover any potential losses should the deal not close.
    • Presentation
    • Previously: HC2 again ups the pressure on MCG Capital (June 16)
    | Jun. 22, 2015, 8:54 AM
  • Jun. 16, 2015, 12:46 PM
    • There's a bit of movement in the stock prices of MCG Capital (MCGC +1.1%) and HC2 Holdings (HCHC +4.3%) following the latest revised offer from Phil Falcone in which he promised to reimburse MCG for not just the $7M cash breakup fee with PennatPark Floating Rate (PFLT +0.2%), but also another $13.35M (in HC2 stock) if HC2 cannot close the purchase.
    • Previous bids by HC2 (now up to $5.30 per share) have done little to affect the stock price of MCG, but the shares today have moved to their highest level since the bidding war started.
    • HC2 is on the move, perhaps suggesting better odds of the company getting its hands on the roughly $175M in cash and liquid investments on the books at MCG.
    • With today's gain, MCG Capital's stock price is up to $4.72.
    • For its part, MCG Capital acknowledges receipt of the latest foray from Falcone and says its will study the bid.
    | Jun. 16, 2015, 12:46 PM | 1 Comment
  • Jun. 16, 2015, 7:16 AM
    • HC2's (NYSEMKT:HCHC) Phil Falcone again makes his case to the MCG Capital (NASDAQ:MCGC) board and again sweetens his bid for the company, offering to pay not just the $7M cash breakup fee, but issue to MCG $13.35M in HCHC common stock - this being equal to the "loss" MCG states it will suffer if HC2 does not close and MCG is forced to liquidate.
    | Jun. 16, 2015, 7:16 AM | 1 Comment
  • Jun. 8, 2015, 9:33 AM
    • In what probably shouldn't be too much of a surprise, MCG Capital (NASDAQ:MCGC) decides HC2's (NYSEMKT:HCHC) bid for the company does not constitute and is not likely to lead to a superior proposal to that of PennatPark Floating Rate Capital (NASDAQ:PFLT).
    • HC2's latest offer is for $5.30 in stock (common or preferred) and cash versus PFLT's at 4.75 in stock and cash.
    • Acknowledging HC2's position to the contrary, MCG continues to believe legal and regulatory issues pose a material risk to a deal actually closing.
    • New MCG slide deck
    • Previously: Falcone ups pressure on MCG Capital with boosted bid (June 3)
    | Jun. 8, 2015, 9:33 AM | 3 Comments
  • Jun. 3, 2015, 9:08 PM
    • HC2 Holdings (NYSEMKT:HCHC) lifts its offer for MCG Capital (NASDAQ:MCGC) by a nickel to $5.30 per share in stock and cash. Additionally, after hearing from certain sizable MCG shareholders in favor of HC2's proposal, Falcone is offering an option for owners to receive $4.80 in HC2 preferred stock instead of common stock.
    • The newly-created preferred shares would carry a dividend yield of 8.125%. The common stock would be subject to a customary 20% symmetrical collar.
    • The cash portion under either option is $0.50 per share.
    • MCGC closed the day's session up 0.65% at $4.65.
    • PennantPark Floating Rate Capital's (NASDAQ:PFLT) offer remains at $4.75 in stock and cash.
    • Previously: Falcone fires back at MCG Capital (June 2)
    • Previously: Fight between Phil Falcone and MCG Capital gets dirty (June 2)
    | Jun. 3, 2015, 9:08 PM | 7 Comments
  • Jun. 2, 2015, 9:23 PM
    • "It seems clear to us that you are bound and determined to defend your pending transaction with PennantPark Floating Rate Capital (NASDAQ:PFLT) at all costs, even if it means depriving your stockholders of an economically superior transaction," writes HC2 (NYSEMKT:HCHC) CEO Phil Falcone to the MCG Capital (NASDAQ:MCGC) board.
    • He states as untrue, MCG's contention that HC2's proposal requires SEC approval, and offers to pay the $7M breakup fee due to PFLT.
    • As further protection for MCG shareholders, HC2 also offers to expand the customary bilateral collar from 15% to 20%, and allow MCG to terminate a merger agreement between the two companies should HC2 stock decline by 30% or more.
    • Noting MCG's criticism of the "volatility" of HC2 stock, Falcone wryly notes the total return since he took over is 267.9%, and the annualized return 154%.
    • MCGC closed lower by 0.4% at $4.62. The PFLT offer is for $4.75 in cash and stock and HC2's is $5.25, also in cash and stock.
    • Previously: Fight between Phil Falcone and MCG Capital gets dirty (June 2)
    | Jun. 2, 2015, 9:23 PM | 8 Comments
  • Jun. 2, 2015, 10:41 AM
    • MCG Capital's (NASDAQ:MCGC) rejection of Phil Falcone's HC2's (NYSEMKT:HCHC) bid for the company, drew an immediate threat of legal action from Falcone, arguing MCG made materially false and misleading statements in its presentation, writes Paul Springer for The Deal.
    • MCG raised Falcone's history with regulators, and a 2013 SEC settlement barring him for five years from working with hedge funds and related financial institutions. In his response letter, to MCG, Falcone has requested the company remove statements that he admitted to engaging in securities fraud, and to pull an implication that criminal charges had been filed against him.
    • In an email to The Deal, Falcone notes HC2 doesn't intend to hold MCG as a BDC and thus needs no SEC approval to buy the company.
    • "It's the cash," says Falcone, of why he and Pennant Park (NASDAQ:PFLT) are so interested in purchasing MCG (it had $115M on its books as of Q1). For MCG owners, a sale is essentially a synthetic equity raise at a time when it would probably have issues doing a real capital raise on the open market.
    • Activist investor Richard Fearon of Accretive Capital Partners continues to stump for the HC2 bid. "They seem to have dismissed both Phil and HC2 as not credible, and I think this is a disservice to shareholders,” he tells The Deal.
    • Related: Accretive Capital Partners Believes HC2 Holdings' Offer For MCG Capital May Be Superior Than PennantPark's (May 18)
    • Previously: MCG Capital rejects HC2 bid (June 1)
    | Jun. 2, 2015, 10:41 AM | 5 Comments
  • Jun. 1, 2015, 9:11 AM
    • The MCG Capital board (NASDAQ:MCGC) says the HC2 Holdings' (NYSEMKT:HCHC) bid for its company does not constitute and is not reasonably likely to lead to a superior proposal versus the current agreement with PennantPark Floating Rate Capital (NASDAQ:PFLT).
    • PFLT's bid is for $4.75 per share in stock and cash, while HCHC's is a $5.25 stock and cash deal.
    • A presentation put together by the MCG board naturally leads off with a history of Phil Falcone's SEC and legal violations and how they could roadblock any HC2 bid.
    | Jun. 1, 2015, 9:11 AM | 11 Comments
  • May 22, 2015, 9:19 AM
    • HC2 (NYSEMKT:HCHC) reminds its offer of $5.25 per share for MCG Capital (NASDAQ:MCGC) consists of $4.75 in common stock of HC2 (amount of shares depends on the price) and $0.50 in cash. This stands against PennantPark Floating Rate Capital's (NASDAQ:PFLT) offer of $4.75 in cash.
    • As for the breakup fee should MCG jilt PFLT, HC2 says it would not eat into either the stock or cash component of its deal.
    • For its part, the MCG board says it's studying HC2's offer, but for now continues to support the bid from PFLT.
    • Phil Falcone: "HC2 is disappointed in this outcome thus far ... HC2's offer provides superior and more certain value as compared to PennantPark's offer."
    • HC2 shot higher in the final few minutes of trade yesterday, though no news was apparent. The company is holding a conference call today, but it's with bondholders as required by its bond indenture.
    • Previously: HC2 boosts bid for MCG Capital (May 19)
    | May 22, 2015, 9:19 AM | 1 Comment